Abstract
ABSTRACTThis study investigates a single-vendor–buyer model with stochastic demand and transportation cost. The transportation cost is a function of shipping weight, distance and transportation modes, namely truckload (TL) and less-than-truckload (LTL) shipments. A heuristic model is developed to minimise the integrated total relevant cost (JTRC) when the mode of transportation is limited to TL and LTL shipments. The decision variables of this study are the buyer's order quantity, the vendor's production quantity per cycle (which is m time the buyer's order quantity), and the safety stock. Numerical examples are given to illustrate the benefits of the model.
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